AMB200  Consumer  Behaviour  

Assessment  Item  1:  CB  Portfolio  

Student  Name:  Jakob  Rosenblatt  Student  Number:  N9170065  

 

Tutorial  Time:  Monday,  6:00pm  Tutorial  Number:  13  Tutor:  Elaine  Brady  Word  Count:  1380    

Introduction   For this assessment, the particular consumer behaviour that I have selected as the basis of this portfolio is “going to the movies”. The portfolio is analysed through three separate worksheets conducted within tutorials of AMB200 – Consumer Behaviour classes. These worksheets are designed to assist us in analysing and exploring our own personal behaviour as a consumer. The three worksheets used throughout this portfolio are; philosophical assumptions, decision-making and perception and learning. Throughout, the theories of personality, advertising power, and perceptual powers are explored.

Worksheet 1 – Philosophical Assumptions

Activity 1 - What are your philosophical assumptions about consumer behaviour? Learning Objectives Upon successful completion of this tutorial, students should be able to:

- compare and contrast the philosophical assumptions about consumer behaviour - use examples and theories to explain their own consumer behaviour

Part A - Knowledge

1. Fill in the table below by circling the view that best reflects your opinion ACTING ON FREE WILL HIGHLY INFLUENCED

2. Which view was dominant?

i) How many As did you have? __3__ ii) How many Bs did you have? __2___

In groups of three (see if you can include one person with an opposite dominant view), introduce yourself and discuss why you have different results. Provide a summary here. In my group of three, I was the only person who predominately chose the ‘acting on free will’ answers. The two group members with opposing views believed that advertising plays a more significant role in their decision making in regard to purchases than it does to myself.

Proactive Consumers mainly act on their own initiative

Reactive Consumers mainly respond to

stimuli from the outside world

Uniqueness Consumers are unique and cannot be compared with other consumers

Universality Consumers are basically similar

Freedom Consumers are basically in control of their behaviour and understand their motives

Determinism The behaviour of people is basically out of

their control and determined by external forces

A B

Variation Consumer behaviour and attitudes change significantly through their lifetime

Stability Consumer behaviours and attitudes are

relatively stable and unchanging over time

Nature Consumers inherit characteristics that influence

how they behave

Nurture Forces in the environmental are the key influence on a consumer’s behaviour

A B

A B

A B

A B

Are you surprised by your findings? No. I do agree that advertising and exterior factors controlled by advertising (e.g. hype about a particular product) are indeed major factors in my decision-making. However, I will not base my decision to buy a product solely off these factors. Part B – Application

3. Using the Engler 2003 reading (available on Blackboard) and consumer behaviour theory from your textbook (supported by academic journals where appropriate), explain how your dominant view influences your perception of the relationship between marketing and consumers. It can be drawn, from activity one; that my overall result indicates that I believe my consumer behaviour and decision-making is based predominately by my own accord and that I primarily “act on free will”. This result directly links to my individual personality. Although the definition of the term “personality” is blurred, it is commonly referred to as one’s public image (Engler, 2003). However, as the decision-making process for me as a consumer is more of an internal, the term “personality” will be referred to more accurately, as a set of individual attitudes, values or beliefs (Haugtvedt & Petty, 1992). My results from activity one show that of the five questions, three leant towards my beliefs as a consumer as “acting on free will”, while the remaining two leant more towards being “highly influenced” by exterior factors. This means that, my perception of the relationship between marketing and consumers is somewhat of a mutual one. Although I do believe the marketing of a product is a very significant to influencing factor to my desire in obtaining a particular product, I will not base a decision of purchase entirely from relationship marketing – when marketers attempt to keep one as a loyal customer by consistently appealing to their personal values, beliefs, and hobbies etc. (Solomon, 2006). How do you think your dominant view influences: i) Your beliefs about the power of advertising I believe that my dominant view that people act more so on free will makes my belief on the power of advertising quite positive overall. Although I don’t believe that advertising alone has the power to make one purchase something, I do believe that it can influence one to more highly consider whether or not they would benefit from that purchase. ii) Your feelings that marketing makes people buy things they don’t need I believe that marketing definitely does have the power to make people buy things that they don’t need. These people in particular, I believe are more impressionable and less aware of the tactics in place that are making them want something. A great example of this is children when seeing a commercial for a new toy (O’Sullivan, 2005).

Worksheet 2 – Decision-making

Activity 2 - What types of decisions do you make? Learning Objectives Upon successful completion of this tutorial, students should be able to:

- categorise examples of their own consumer behaviour - compare and contrast limited and extended problem solving - explain their own consumer behaviour using the decision making process framework

Part A - Knowledge

1. Choose a consumer behaviour that you have done in the last month from the

following list:

Limited problem solving Extended problem solving

Information search Low risk and involvement Little search Information processed passively In-store decision likely

High risk and involvement Extensive search Information processed actively Multiple sources consulted prior to store visits

Alternative evaluation Weakly held beliefs Only most prominent criteria used Alternatives perceived as basically similar Non-compensatory strategy used

Strongly held beliefs Many criteria used Significant differences perceived between alternatives Compensatory strategy used

Purchase Limited shopping time; may prefer self-service Choice often influenced by store displays

Many outlets shopped if needed Communication with store personnel often desirable

• Buying a PC/laptop/high-technology item

• Booking/arranging/going on an overseas holiday

• Selecting a university

• Going to the movies

• Choosing a restaurant for a special occasion

• Evaluating and selecting a mobile phone plan

• Choosing to do volunteer work

• Buying a fashion item

• Going to a concert

• Changing a habit (reducing alcohol consumption, taking more exercise, eating more healthy)

2. Think about how you made the decision to do that behaviour. Now circle the way you did

information search, evaluation and purchase.

3. Now based on the table above, classify the behaviour into one of these two categories:

[X] Limited problem solving [] Extended problem solving

4. For this decision, what was your decision style?

[] Rational [X] Automated

In groups of the same decision style (rational or automated) discuss:

What feature of the behaviour you have in common that made the decision rational or automated? The feature that made it automated for the group was the fact that it was the second instalment of a well-known film franchise, and we had all enjoyed the first. Therefore, not a lot of thought or extended research went into whether or not we should purchase a ticket to see this instalment, as we automatically assumed that we would enjoy it. Also, the fact that seeing a movie is a low-cost activity helped throughout the decision making process. Being students also reduces the ticket price, meaning its affordability was even greater, which definitely influenced our decision. In what circumstances could your decision style have been opposite to the one you identified? If the film wasn’t apart of a franchise which I’d already enjoyed, my decision-making wouldn’t have been as automated. I would have undertaken more extended research throughout my decision-making process. What would make you change your decision style? Something that would make me change my decision style would be if the film I was about to purchase a ticket for were completely foreign to me. Meaning I had either never heard of it before, didn’t have any close friends or reference groups to provide their opinion or even if the film didn’t have any actors/actresses that I enjoy – factors such as these would have made me do further research (perhaps watching the trailer or reading a review) before purchasing a ticket.

Part B – Application 5. Using consumer behaviour theory from your textbook (supported by academic journals where

appropriate), explain why: i) you used limited or extended problem solving

According to Solomon (2013, p. 268), limited problem solving is associated with something called heuristics. According to the Oxford Dictionary (2016), heuristics are defined as; “Enabling a person to discover or learn something for themselves: a ‘hands-on’ or interactive approach to learning’. Solomon simply refers to heuristics as ‘mental shortcuts’ in regard to consumer decision-making. It is explained that consumers quite often fall back on these ‘mental shortcuts’ or ‘rules of thumb’ in order to lead to a speedy decision (Hausman, 2000). This is relevant to my decision-making process in purchasing a ticket for this particular film, as I simply referred to my own heuristics or ‘rules of thumb’ that led me to believing I would enjoy it. These rules being: I enjoyed the first movie, I like the starring actors in it and the ticket was affordable.

ii) your decision was rational or automated

A large number of consumer decision-making is automated, or made primarily out of habit (Solomon, 2013, p. 247). Habitual decision-making occurs when little-to-no effort has gone into a decision prior to making a purchase, almost as if it had been made sub-consciously (Solomon, 2013, p. 276). This was very much the case with my choice to purchase a ticket to this particular film. I was with a friend with whom we had both agreed that we wanted to see this film at a date prior to when we made our ticket purchase. This means, that by the time we had actually made the purchase before going into the cinema, the fact that we were spending money on a ticket was barely a factor that crossed our minds, and more-so was the fact that we were about to see the movie, rather than being a consumer making a purchase.

Worksheet 3 – Perception and learning

Activity 5 – The role of perception, learning and memory in consumer behaviour.

Learning Objectives Upon successful completion of this tutorial, students should be able to:

- identify the elements of the perceptual process and classify their own behaviour - recognise which perceptual distortions apply to them - compare and contrast interpretations of the consumer behaviour of peers - describe the different ways consumers learn

What was the consumer behaviour you selected in Activity 2? Going to the movies . Part A - Knowledge

1. Using the perceptual process, describe your reactions to your selected consumer behaviour situation.

Exposure Attention Interpretation Which senses were stimulated? How?

What aspects of the product/service, environment were you aware of at the time? Why?

How did you interpret the experience (good? bad?) Why?

- Sights – Film trailers playing. Tidy lobby area/ cinemas. - Sounds – Loud booming of trailers/ advertisements. - Smell – smell of popcorn.

- Movie was part two in a series. - Enjoyed starring actors/ actresses. - Nice comfortable seats. - Air-conditioning. - Affordable tickets.

Overall not great. The movie was a let down, which is what I remember most above all. Now that I think about other aspects (comfortable seats, air conditioning, food etc.), the experience was actually quite pleasant. But for me, my enjoyment of the film is prioritised above all other factors.

2. Did any of these distortions in perceptual interpretation occur to you?

Yes or No

Perceptual distortions How did these occur?

NO § Physical Appearances - making judgments on people’s or objects’ appearance or other attributes

N/A

NO § Stereotypes - mental shorthand, mental “pictures of meaning”, of product or brand – or people, i.e. who might use the product?

N/A

NO § Irrelevant Cues - distractions from main stimulus

N/A

Yes § First Impressions - usually lasting – based on random attention

First time I saw film’s trailer, was very excited to see that this 2nd instalment was being made.

Yes § Jumping to Conclusions - tuning out because message is not relevant to self – (could be perceptual defence or lack of experience)

Tuned out of the film, as it was not as entertaining as I thought it would be.

Yes § Halo Effect - making a judgment based on one or two (positive/negative) criterion (i.e. brand name) and not considering other criteria – (selective perceptions)

I had previously made a positive judgement on the film before seeing it. Because I enjoyed the first film in the series, I didn’t think about anything else.

Part B - Application 3. Now describe the situation to people in your class and ask them how they would interpret the

same situation. Select one interpretation that is different to yours and explain why it is different using consumer behaviour theory from your textbook (supported by academic journals where appropriate).

Alternative Interpretation Why is this different to yours? They enjoyed the film.

This relates back to personality being described as a set of attitudes, values or beliefs (Haugtvedt & Richard, 1992). More specifically, since we are members of different sub-groups of society (me being male, her being female etc.), we enjoy different things (Solomon, 2006).

4. How did you learn about your selected consumer behaviour; complete the table below (select as many as apply).

Yes or No Type of learning Explain Yes Classical Conditioning

(Did you make positive or negative associations about any aspect of the consumption?)

Previously, I have made both positive and negative associations with purchasing movie tickets, as I have both enjoyed and disliked different films. However, most have been positive, hence why I continue to see new movies.

Yes Operant Conditioning (Were there rewards or punishments?)

The reward is that afterwards, you will have seen a new film. A punishment is that if you do not enjoy a film, you feel as though you wasted money.

No Rote Learning (Did you learn any aspect by rote?)

N/A

Yes Observational Learning (Did you learn about the consumption experience by watching others?)

When I first started buying tickets for myself, I learnt how to go about it (what I say to the cinema worker etc.) by observing my parents by tickets for me as a child, and also through my peers buying tickets for themselves and copying.

No Reasoning (Did you do research, investigate the possibilities to learn about the situation?)

N/A

5. Imagine that your friend needs to learn about one aspect of your selected consumer behaviour.

a. What type of learning do you think would be the most relevant? Why?

I believe that the most relevant thing that one needs to learn when it comes to the consumer behaviour of “going to the movies” is the purchasing of a ticket. For that, I believe that observational learning is the most relevant and effective way of learning how to purchase a ticket. This is because, one can simply observe what the others are doing, and learn it quickly and effectively by copying that behaviour.

b. List out the steps you could take to help your friend learn about this aspect of your selected consumer behaviour.

1. Buy a ticket with them. 2. Speak loudly to the ticket clerk so my friend can hear what I say 3. Guide them with what to say if they stumble or can’t remember 4. Repeat process by seeing multiple films until they have the process memorised.

Conclusion

In conclusion, I have learnt a lot about myself as a consumer through my own consumer behaviour. Although I do believe that advertising and marketing does have a strong influential effect throughout peoples’ decision-making, I do not believe that it would be enough for me personally to base a purchase solely from exterior factors. For my chosen consumer behaviour of “going to the movies”, I found that my decision-making process was conducted primarily using limited problem solving, with the end decision being more of an automated, rather than requiring extended problem-solving or research to reach a more rational decision. Heuristics were used to make my decision quicker, as the film I was seeing ticked off my mental expectations that indicated I would enjoy it. I also learnt that sight, sound and smell were also influential senses that were triggered that all contributed to my overall view of the experience. It was also interesting to realise that the actual way in which I learnt that particular consumer behaviour was through observational learning, where I noticed how it was done and simply mimicked the behaviour to learn for myself.

References

Engler, B. (2003). Personality theories: An introduction.

Haugtvedt, C. P., & Petty, R. E. (1992). Personality and persuasion: Need for cognition

moderates the persistence and resistance of attitude changes. Columbus, OH: College

of Business, the Ohio State University.

Hausman, A. (2000). A multi-­‐‑method investigation of consumer motivations in impulse buying

behavior. Journal of Consumer Marketing, 17(5), 403-426.

doi:10.1108/07363760010341045

O'Sullivan, T. (2005). Advertising and children: What do the kids think? Retrieved April 20,

2016, from http://www.emeraldinsight.com/journal/qmr

Oxford Dictionary. (2016). Definition of heuristic in English:. Retrieved April 20, 2016, from

http://www.oxforddictionaries.com/definition/english/heuristic

Solomon, M. R. (2006). Consumer behaviour: A European perspective (3rd ed., Vol. 1). Harlow,

England: Financial Times/Prentice Hall. Solomon, M. R. (2013). Consumer behavior: Buying, having, and being (3rd ed.). Upper Saddle

River, NJ: Pearson Prentice Hall.

Appendix Other links used to grasp a further understanding on the following topics: Advertising -

https://books.google.com.au/books?id=oF5LBAAAQBAJ&pg=PA4&dq=the+power+of+advertising&hl=en&sa=X&ved=0ahUKEwjuktaVmJ3MAhVV-mMKHUmcAJkQ6AEIKTAB#v=onepage&q=the%20power%20of%20advertising&f=false

Learning Techniques https://books.google.com.au/books?id=9LkEfvKe1LwC&printsec=frontcover&dq=learning+techniques&hl=en&sa=X&ved=0ahUKEwiV1_WumJ3MAhUQ12MKHRKOCHEQ6AEIIDAB#v=onepage&q=learning%20techniques&f=false Issues in Consumer Behaviour https://books.google.com.au/books?id=nCECPF0TBcoC&printsec=frontcover&dq=consumer+behaviour&hl=en&sa=X&ved=0ahUKEwjMkfSmmJ3MAhUB22MKHTv5DNgQ6AEIIDAB#v=onepage&q=consumer%20behaviour&f=false Client Relationships https://books.google.com.au/books?id=M-ebG4FG7DUC&printsec=frontcover&dq=marketing&hl=en&sa=X&ved=0ahUKEwidz4GimJ3MAhUBU2MKHfOOBW0Q6AEIJDAA#v=onepage&q=marketing&f=false